What real estate gained in Union Budget 2021?


New Delhi: This government considers "housing for all" and affordable housing to be priority areas, said Finance Minister Nirmala Sitraman, presenter of the Union's budget 2021-22. The real estate sector had high expectations in the 2021 budget, especially after the Covid-19 pandemic. Here's what real estate earned in the federation's 2021 budget: Increase the safe haven limit for the initial sale of residential units In order to incentivize home buyers and property developers, it is proposed to increase the safe-haven limit from 10% to 20% for the specified base sale of condominiums. Affordable housing In the July 2019 budget, the government has provided an additional interest deduction, of Rs 1.5 Lakh, for the loan taken for the affordable home purchase. The Finance Minister suggested extending this discount eligibility for another year, until March 31, 2022. Therefore, the additional discount of Rs 1.5 Lakh will be available for loans obtained until March 31, 2022, for the purchase of a home. Additionally, to maintain the supply of affordable housing, the FM suggested that affordable housing projects take advantage of a tax credit for another year, until March 31, 2022. To promote the provision of affordable rental housing for migrant workers, Sitharaman has proposed allowing tax exemption for affordable rental housing projects. REIT InVIT and REIT debt financing will be enabled by foreign portfolio investors through appropriate amendments to the relevant laws. This will facilitate access to financing from InVITS and REITs, and increase financing for the infrastructure and real estate sectors. In the previous budget, the government abolished the Dividend distribution tax (DDT) to encourage investment. Dividends become taxable at the hands of shareholders. Now, to facilitate compliance, FM has proposed paying dividends to a TDS-exempt REIT / InvIT. Moreover, since the amount of dividend income cannot be properly estimated by shareholders for advance tax payments, FM suggested stating that the expected tax liability on dividend income would arise only after the dividend is declared/paid. In addition, for the portfolio's foreign investors, the Minister of Finance proposed allowing a tax deduction on dividend income at a lower rate under the treaty. Also Read: Pradhan Mantri Awas Yojna